"While there is no reasonable justification for a structurally
unprofitable and horribly managed company to enjoy a $40 billion
market cap, proponents of the stock tout its growth," he said.
"That story is clearly over."

Tesla's monthly deliveries for 2018 and 2019.Ed McCabe

In its most recent quarterly update, Tesla reaffirmed guidance of
360,000 to 400,000 deliveries worldwide for the full year.
Halfway through the year, total sales were at roughly 158,000, or
about half of the low end of that range.

However, McCabe said that even if Tesla hits these goals, it
likely wouldn't help the balance sheet.

Shares of Tesla have fallen 38% since their most recent high in December.Markets Insider

"To
reach the low-end of guidance Tesla needs to average 103K
deliveries in the remaining two quarters of the year," he said.
"To reach the high-end it needs to average 123K. Both would
exceed Tesla's second quarter record. Neither will happen. It's
also irrelevant. The company is structurally unprofitable. The
more cars Tesla sells the more money it loses."

"Remember that the staggering losses and cash burn have occurred
while Tesla has had the electric vehicle market essentially to
itself and Musk has promised imminent and sustainable profits and
cash flow generation multiple times," he said.

"Back-to-back quarters of negative revenue growth, increasing
losses, and cash burn will make plain to even the most ardent
believers that Tesla is not a viable business."

Editor's note: An earlier version of this story incorrectly
said McCabe's employer was Highbridge Capital Management. It is
TLF Capital.